Written by attorneys · grounded in primary & secondary sources — see below
under the rule against perpetuities
A contingent future interest terminable by the uncontrolled exercise of a power held by another solely for that person's benefit. The period during which such a power exists is excluded when measuring the perpetuities period for the interest.
Sources & Authorities
How it applies
Common Examples
2
Power to Sell Cuts Off Remainder
Delilah Duran conveyed her ranch to Damian Decker for life with remainder to Darius Dixon if Darius survives Damian and graduates law school. Delilah retained an unrestricted power to direct the trustee to sell the ranch and distribute all proceeds to herself alone. Darius's remainder is subject to destruction at Delilah's sole discretion for her benefit, so the period of that power is disregarded when testing whether the remainder must vest or fail within lives in being plus twenty-one years.
Class Gift Exposed to Dilution
Isaac conveyed securities in trust to benefit analysts promoted to partner at Pioneer Securities after his death, with each partner's share subject to pro rata reduction upon later promotions. The trust instrument gave the trustee an unrestricted power to liquidate the securities and distribute proceeds to Isaac's estate at any time. Because the trustee alone could destroy the class interests for the estate's benefit, the period of that power is disregarded when determining whether any class member's interest remains subject to an unfulfilled condition or diminution beyond lives in being plus twenty-one years.
Put it into practice
Test Yourself
5
Practice Questions2
· 6 sources
Select any source to read its text and confirm it supports the definition.
Restatements
Casebooks
Common questions
Frequently Asked
3
How does a personal power of destruction affect measurement of the perpetuities period?+
The time during which a person can destroy a contingent future interest solely for her own benefit is excluded from the perpetuities calculation. This exclusion prevents the mere existence of the power from causing a violation even if the power could theoretically last indefinitely.
Supporting sources
Does the destructible-interest exception apply only to life estates or also to other intervening interests?+
The exception applies whenever an intervening interest can be terminated at the uncontrolled discretion of a person who holds the power for her exclusive personal benefit. It is not limited to life estates and extends to any arrangement that places destruction within one person's sole choice.
Supporting sources
What happens to a contingent interest that follows a destructible interest under the rule against perpetuities?+
The contingent interest is tested as though the destructible period did not exist. Validity turns on whether the interest must vest or fail within lives in being plus twenty-one years once the destructible period is disregarded.
Supporting sources
Real PropertyOwnership of real property · Future interestsNEXTGENFoundational